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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> Discussion of
Research Administrators' Issues [mailto:RAMTALK@listserv.arizona.edu] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Jing Liu<br>
<b><span style='font-weight:bold'>Sent:</span></b> Friday, November 13, 2009
2:37 PM<br>
<b><span style='font-weight:bold'>To:</span></b> RAMTALK@listserv.arizona.edu<br>
<b><span style='font-weight:bold'>Subject:</span></b> open skies agreements vs.
fly america act</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>Dear all:</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>A number of you have asked questions in regards to how to
apply the “Open Skies” Agreements when purchasing airline tickets
from foreign carriers.</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>At this point, only National Science Foundation (NSF) has
adopted the “Open Skies” Agreements for their grants. The
“Open Skies” Agreements do not apply to NSF cooperative agreements
and fellowship awards. Other Federal agencies have not updated their
grants policies to incorporate the “Open Skies” Agreements. </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>Please be aware that even for NSF grants, there are certain
criteria to be met before a ticket from a foreign carrier can be
purchased. See below for an excerpt from the NSF’s Research Terms
& Conditions - Agency Specific Requirements:</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>“d.
<i><span style='font-style:italic'>Use of Foreign-Flag Air Carriers</span></i></span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>There
are limited circumstances under which use of a foreign-flag air carrier is
permissible. These circumstances are outlined below:</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>1. <i><span
style='font-style:italic'>Airline "Open Skies" Agreements</span></i>:
A foreign flag air carrier may be used if the</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>transportation
is provided under an air transportation agreement between the United</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>States
and a foreign government, which the Department of Transportation has</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>determined
meets the requirements of the Fly America Act. For example, in 2008, the</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>U.S.
entered into an "Open Skies" Agreement with the European Union. This</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>Agreement
gives European Community airlines (airlines of Member States) the right to</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>transport
passengers and cargo on flights funded by the U.S. government, when the</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>transportation
is between a point in the United States and any point in a Member State</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>or
between any two points outside the United States. In accordance with the</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>Agreement,
however, a U.S.-flag air carrier must be used if: (a) transportation is</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>between
points for which there is a city-pair contract fare in effect for air passenger</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>transportation
services; or (b) transportation is obtained or funded by the Secretary of</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>Defense
or the Secretary of a Military Department. The conditions for use of a Member</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>State
airline apply to non-Federal employees as well (e.g., grantees). So, even
though</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>grantees
are ineligible for city-pair contract fares, they must still use a U.S.-flag
air</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>carrier
if a city-pair contract fare exists. For information on other "open
skies"</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>agreements
in which the United States has entered, please refer to GSA's website:</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=blue
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:blue'>http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=24833&noc=T</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>2. <i><span
style='font-style:italic'>Involuntary Rerouting: </span></i>Travel on a
foreign-flag carrier is permitted if a U.S.-flag</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>air
carrier involuntarily reroutes the traveler via a foreign-flag air carrier,
notwithstanding</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>the
availability of alternative U.S.-flag air carrier service.</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>3. <i><span
style='font-style:italic'>Travel To and From the U.S.</span></i></span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>Use of
a foreign-flag air carrier is permissible if the airport abroad is:</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>(a) the
traveler's origin or destination airport, and use of U.S.-flag air carrier
service</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>would
extend the time in a travel status by at least 24 hours more than travel by a</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>foreign-flag
air carrier; or</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>(b) an
interchange point, and use of U.S.-flag air carrier service would increase the</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>number
of aircraft changes the traveler must make outside of the U.S. by two or more,</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>would
require the traveler to wait four hours or more to make connections at that
point,</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>or
would extend the time in a travel status by at least six hours more than travel
by a</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>foreign-flag
air carrier.</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>4. <i><span
style='font-style:italic'>Travel Between Points Outside the U.S.</span></i></span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>Use of
a foreign-flag air carrier is permissible if:</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>(a)
travel by a foreign-flag air carrier would eliminate two or more aircraft
changes en</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>route;</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>(b)
travel by a U.S.-flag air carrier would require a connecting time of four hours
or</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>more at
an overseas interchange point; or</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>(c) the
travel is not part of the trip to or from the U.S., and use of a U.S.-flag air</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>carrier
would extend the time in a travel status by at least six hours more than travel
by a</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>foreign-flag
air carrier.</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>5. <i><span
style='font-style:italic'>Short Distance Travel. </span></i>For all short
distance travel, regardless of origin and</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>destination,
use of a foreign-flag air carrier is permissible if the elapsed travel time on
a</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-autospace:none'><font size=3 color=black
face=Arial><span style='font-size:12.0pt;font-family:Arial;color:black'>scheduled
flight from origin to destination airport by a foreign-flag air carrier is
three</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt;font-family:Arial;color:black'>hours or less and service by a U.S.-flag
air carrier would double the travel time.”</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>Here is an excerpt from the January 09’s <i><span
style='font-style:italic'>Federal grants News</span></i> to help to determine
the “Open Skies” allowability and how to search for a city pair
agreement.</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>“The “Open Skies” allowability and a city
pair agreement work as follows: If an investigator is flying from Minneapolis
to Paris, check the General Services Administration’s Web site of city
pairs (<a href="http://apps.fas.gsa.gov/citypairs/search/">http://apps.fas.gsa.gov/citypairs/search/</a>).
The web page does not list a city pair agreement from Minneapolis to Paris;
consequently, any carrier from the European Union could be used. However,
if there were a city pair agreement designated for Minneapolis to Paris, then
the U.S. Carrier must be used. One advantage of the city pair program is
cheaper fares; however, these lower fares are not available to nongovernment
employees.”</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>The full text of the NSF Research Terms & Conditions
– Agency Specific Requirements can be viewed at: <a
href="http://www.nsf.gov/pubs/policydocs/rtc/nsf_109.pdf">http://www.nsf.gov/pubs/policydocs/rtc/nsf_109.pdf</a></span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'>You can also view the SPS Financial Compliance News, Issue
No. 30 (1/9/09), item B for information about how to apply the “Open
Skies” Agreements.</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'><a
href="http://sps.arizona.edu/financialcompliance/training/news/Financial%20Compliance%20News_30_010909.doc">http://sps.arizona.edu/financialcompliance/training/news/Financial%20Compliance%20News_30_010909.doc</a></span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Jing Liu, CPA<br>
Manager, Sponsored Projects Quality Assurance<br>
Sponsored Projects Services<br>
The University of Arizona<br>
PO Box 3308<br>
Tucson, AZ 85722-3308<br>
(520) 626-6442<br>
Fax: (520) 626-4137<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
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